Dubai – The Dubai, UAE-based international ports operator DP World said on Sunday (13) that it has entered into an agreement to acquire a 71.3% stake in Puertos y Logistica S.A. (Pulogsa) from Minera Valparaiso and other shareholders associated with the Matte Group in Chile. As a result, DP World will now operate two of Chile’s main ports: Puerto Central (PCE) and Puerto Lirquen (PLQ), Emirates News Agency (WAM) reported.
Pulogsa is listed on the Santiago stock exchange, and the acquisition will be effected via a tender offer to acquire all outstanding shares of the business. DP World will offer US$502 million in consideration for 100% equity ownership. As of September 30, 2018, Pulogsa had USD 226 million in net financial debt.
DP World is expecting the deal to be earnings-accretive in the first full year of consolidation, and it will be financed from existing balance resources. The transaction is subject to relevant third-party consents and is expected to close in the first half of 2019.
Pulogsa operates a long-term concession for Puerto Central (PCE) in San Antonio, in Chile’s Central Region V as well as owning and operating Puerto Lirquen (PLQ) in Chile’s Southern Region VIII.
PCE is a multipurpose terminal located in San Antonio, which is a gateway to the Chilean capital Santiago and to leading industrial, commercial and agricultural businesses. PCE is one of the country’s largest container ports (over 1MN TEU capacity) with recent infrastructure investments, making it the most modern terminal in Chile. PCE has the potential for further capacity expansion for both container and non-container operations.
PLQ is a multipurpose terminal incorporating long-term maritime concessions with freehold land ownership, which handles containers, break-bulk and dry bulk. The port is strategically positioned to benefit from the well-established pulp and lumber industry in Southern Chile, next to the country’s second largest city and industrial hub Concepción.
Commenting on the acquisition, DP World Group chairman and CEO Sultan Ahmed bin Sulayem, said, “We are delighted to extend our global footprint with a major entry into Chile, Latin America’s most developed economy, with attractive growth prospects and a dynamic business environment.” These new assets, Sulayem said, will allow DP World to serve cargo owners and shipping lines at five key gateways on the west coast of South America in Posorja (Ecuador), Callao and Paita (Peru) and San Antonio and Lirquen (Chile).
He also said PCE and PLQ “are both ‘best in class’ terminals in their respective markets, with long-term operating rights, strong cargo diversification and significant capability for expansion.”.
DP World has been operating DP World Santos, one of Brazil’s biggest private seaports, at the Port of Santos, since December 2017.
Translated by Gabriel Pomerancblum
